A.  It is the responsibility of the commissioner of administration through the office of risk management to manage all state insurance covering property and liability exposure, through commercial underwriters or by self-insuring.  Personnel benefits and group health and life coverage are excepted.  It is also the responsibility of the commissioner of administration through the office of risk management to manage all tort claims made against the state or any state agency whether or not covered by the Self-Insurance Fund.

B.  The duties and responsibilities of the office of risk management shall include but not be limited to the following:

(1)  Administration of the state’s risk management program.

(2)  Recommendation to the legislature of the amounts of premium charges assessable to the various state agencies.

(3)  Provision of claim adjustment services through either employees or contractual services.

(4)  Assist its counsel in the defense of claims against the state.

(5)  Investigation of claims falling within the scope of this Chapter.

(6)  Negotiation, compromise, and settlement of all claims against the state or state agencies covered by the Self-Insurance Fund, and all tort claims against the state or state agencies whether or not covered by the Self-Insurance Fund; however, all such compromises and settlements shall be made in return for a complete release and waiver of all further liability of the state, state agencies, and of the officers, officials, and employees covered by La. Rev. Stat. 13:5108.2.  No settlement over twenty-five thousand dollars per claimant shall be made without the approval of the attorney general’s office.

(7)  Provision of loss control services to all state agencies.

(8)  Coordination with the state fire marshal’s office.

(9)  Issuance of contracts to officers and agencies for any self-insured coverages; however, such contracts shall contain subrogation clauses subrogating to the state of Louisiana the rights of any insured thereunder against any third party for the amount of the loss insured.

(10)  Purchase of insurance through commercial carriers when necessary to implement the provisions of this Chapter.

(11)  Maintenance of an inventory of state owned property and contents to include accurate valuations.

(12)  The promulgation of rules and regulations to establish procedures governing state risks including but not limited to the early reporting of all accidents, property damage, and injuries sustained where a participating or covered entity of the state may be liable for damages in whole or in part in connection therewith, the investigation of such reports, and the compromise of a claim or lawsuit where appropriate.

C.  In addition to the foregoing duties and responsibilities, the commissioner of administration is authorized to adjust and negotiate tort claims which are not covered by the Self-Insurance Fund and to compromise or settle such claims against the state or against state agencies as defined by La. Rev. Stat. 39:1527(1) in the manner provided for in La. Rev. Stat. 39:1535(B)(6).  Settlements or compromises of claims which are not self-insured shall be paid from the state general fund.

D.(1)  Any settlement or compromise agreement of claims against the state or a state agency for an amount of five hundred thousand dollars or more that is covered by the Self-Insurance Fund, or of tort claims against the state or a state agency whether or not covered by the Self-Insurance Fund shall contain a resolutory condition that payment shall not be made unless the agreement is approved by a majority of the members of a subcommittee of the Joint Legislative Committee on the Budget comprised of three members of the Senate and three members of the House of Representatives designated by the chairman.

(2)  Notwithstanding any other provision of law to the contrary, the subcommittee may meet in executive session to consider such agreement.

(3)  The subcommittee shall be presented with a concise abstract of the facts and principles of law upon which the claim is based.  The abstract shall include a detailed analysis of the calculation of damages as well as the costs of court and interest thereon.  The abstract and other information submitted to the subcommittee shall be public record, with the exception of material that reflects the mental impressions, conclusions, opinions, or theories of an attorney obtained or prepared in anticipation of litigation or in preparation for trial.

(4)  The amount of the settlement and terms and conditions of the agreement shall be public record.

Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 1988, No. 53, §1; Acts 1988, No. 448, §3, eff. July 1, 1988; Acts 1989, No. 761, §1; Acts 1992, No. 385, §1; Acts 1993, No. 1038, §1; Acts 1995, No. 1059, §1, eff. June 29, 1995.